3-21-16 Reg. Meeting - Laserfiche WebLink

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BK: 00028 PG -0177 Section 8 — Terms: Due to the nature of this program, flexible loan terms are permitted to the degree needed by the project. Quarterly or monthly payments of principal and interest on the unpaid balance shall be considered the norm. Any deviation from the norm shall be justified by the applicant through the project pro -forma and other supporting documentation. In order to have an adequate turn around on loan funds, the following minimum criteria shall be followed: A. Principal or interest payments shall not be deferred for a period greater than two (2) years; B. The maximum term for RLF loans shall be seven years. Amortization schedules with longer terms and balloon payments can be crafted to suit the project, however, loans must be repaid within the seven year period; and C. The RLF program also offers a mezzanine loan product that is not readily available in Lee County. Each mezzanine loan is intended to be subordinate to the primary loan on a project, so for each project the interest rate shall be higher than the primary loan, which will typically be a conventional commercial bank loan. Mezzanine loan interest rates are typically at least five (5) points higher than the rates offered for conventional bank loans, with even higher rates required as the loan takes on more flexible, equity -like characteristics, such as deferred payments or longer amortization periods. Section 9 — Loan Annlication Processing: Loan applications will be accepted at any time during normal County business hours. All loan applications are to be delivered to the Office of the County Manager, 408 Summit Drive, Sanford, North Carolina 27330. The loan committee will meet and evaluate the application(s) not later than 15 days after submission of the completed application and make its recommendations to the Board of Commissioners within 45 days after submission by the applicant. A quorum of the loan committee (3 members) is required for a loan application to be considered. The Board of Commissioners will consider the RLF Loan Committee's recommendation and decide whether or not to hold a public hearing on the application. No loan can be approved without a public hearing. A loan application package shall consist of a completed loan application, supporting documentation, and any other information the RLF Loan Committee may determine to be necessary to satisfy the requirements and objectives of the program. The County Attorney shall coordinate the closing of each loan. The County Attorney shall review and/or prepare all loan documents prior to closing. The applicant will be responsible for all legal/closing fees related to the loan. The Loan Committee may permit this amount to be included in the amount financed, if requested by the applicant. on